Your risk of getting a tax audit ‘is way up’
IRA takes tougher stance on returns
Based on the amount of income that Americans fail to report every year - $345 billion, according to one government report - millions of Americans have little fear of a government audit.
But tax pros and government reports suggest the Internal Revenue Service is gradually shedding its “kinder and gentler” attitude in favor of more and stricter audits. An audit could be like a truck in your side-view mirror: closer than it appears.
In January, the IRS said audits for the fiscal year ended Sept. 30 climbed 7 percent for individuals, 14 percent for taxpayers earning more than $100,000, and 30 percent for those making $200,000 or more. Millionaires had a 1 in 11 chance of losing audit roulette.
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Tax Preparers Unreported Income Criminal Penalties and Fines
For my upcoming seminar May 2008 on IRS and Unreported Income I have prepared the following summary: Tax Preparers Unreported Income: Criminal Penalties and Fines (Imprisonment up to 18 Years)
Felonies
1) IRC §7201: Tax Evasion (Willful Evasion of Tax)
Felony: Up to 5 years in prison
Fine: $100,000 (individual), $500,000 (corporation)
2) IRC §7206: Fraudulent Tax Return (Preparation)
Felony: Up to 3 years in prison
Fine: $100,000 (individual), $500,000 (corporation)
3) Additional Felonies:
IRC §7212: Obstruct (Impede Collection of Tax)
18 U.S.C. 371 – Conspiracy to Impede Tax Collection
(Separate Charge of Impeding)
Misdemeanors
4) IRC §7203: Failure to File Tax Return
(Keep Records, Supply Information)
Misdemeanor: Up to 1 year in prison
Fine: $25,000 (individual), $100,000 (corporation)
5) IRC §7210: Failure to Comply with Summons
(Testimony, Production of Books & Records)
Misdemeanor: Up to 1 year in prison
Fine: $1,000
Tax Payers Unreported Income Criminal Penalties and Fines
For my upcoming seminar May 2008 on IRS and Unreported Income I have prepared the following summary:
Tax Payers Unreported Income: Criminal Penalties and Fines
18 U.S.C. 371: Conspiracy to Impede Tax Collection (Separate Charge of Impeding)
Misdemeanors
3. IRC §7203: Failure to File Tax Return
RC §6651(f)): Fraudulent Failure to File Tax Return
IRC §6663(a)): Fraudulent Tax Return Filed
2) Failure to Pay Tax
IRC §6651(a)(3): Not Shown on Return
Actor Snipes acquitted of tax fraud, guilty of failing to file a return
Filed under: tax evasion, tax preparer, unreported income
Highlights of Los Angeles Times article 2/2/2008
A federal jury in Florida acquitted actor Wesley Snipes of felony charges of tax fraud and conspiracy Friday but found the former high-profile star guilty on three misdemeanor charges of failing to file a tax return.
Snipes and two co-defendants were indicted in October 2006. The government alleged that he tried to defraud the Internal Revenue Service by filing false tax returns for 1996 and 1997 that claimed a total of $11.4 million in refunds. The IRS also contended the actor didn’t file tax returns for 1999 through 2004, despite earning millions of dollars during that period.
Snipes’ co-defendants, a longtime Florida tax protester and an accountant hired by Snipes as a consultant, were convicted of tax fraud and conspiracy.
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